S&P rates EnviroSolutions loans B-

Standard & Poor's said it assigned its B- corporate credit rating to EnviroSolutions Holdings Inc. and its B- senior secured bank loan rating and a 3 recovery rating to the company's proposed $40 million senior secured revolving credit facility due 2011 and $175 million senior secured term loan B due 2012.

The outlook is positive.

Proceeds will be used to refinance all existing debt and finance planned capital projects, the agency said.

S&P said the ratings reflect the company's very modest size and narrow scope of activities, meaningful negative free cash flow during the next two years to fund the development and expansion of two acquired landfills and a highly leveraged financial profile stemming from considerable debt usage.

These factors are partially offset by favorable overall industry characteristics and decent competitive positions in two densely populated regional markets, S&P added.

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